How platforms are redefining payment options
Online property management platforms in Australia are introducing new charges or pushing tenants toward paid memberships to avoid costs from the recent ban on credit card surcharges. The change affects renters using digital platforms to pay rent, particularly in Victoria, where tenants have reported being encouraged to pay via bank transfer or face additional fees. Consumer advocates say the shift undermines the intent of the surcharge ban, which was designed to protect renters from hidden payment costs.
The ban on credit card surcharges, enforced by the Australian Competition and Consumer Commission, took effect to prevent businesses from passing on payment processing fees to consumers. However, some rent-tech platforms have responded by adding flat fees, administrative charges, or requiring tenants to subscribe to premium services to access free payment options. In Victoria, renters have reported being told that using a credit card incurs a fee, while bank transfers or direct debits remain free—effectively steering them away from card use without explicitly charging a surcharge.
What recourse do renters have against these fees?
Platforms are reclassifying credit card payments as a premium service, offering them only through paid membership tiers or at an added cost. One Melbourne-based tenant reported being charged a $5 monthly fee to use their credit card for rent payments, while another said their platform offered a „free” bank transfer option but added a $2.50 processing fee for card use. These tactics, while not technically surcharges, achieve a similar outcome by making card payments less attractive or more expensive. Tenants’ unions argue this creates a two-tier system where those who can afford memberships pay less, while others face higher effective costs.
Tenants can challenge these fees by contacting their platform’s customer service or lodging a complaint with Consumer Affairs Victoria or the ACCC. Advice from tenant advocacy groups includes requesting a breakdown of all charges and refusing to pay fees not clearly outlined in the lease agreement. Some renters have successfully had fees waived after disputing them, particularly when platforms failed to provide transparent justification. Legal experts note that while the platforms may not be breaking the surcharge ban directly, they could be violating unfair contract terms laws if fees are hidden or misleading.
Are these new fees legal under the surcharge ban? While not technically surcharges, fees that effectively penalize credit card use may still violate consumer protection laws if they are misleading or unfair.
Frequently Asked Questions
Can I refuse to pay a fee for using my credit card to pay rent? Yes, you can dispute the fee with your platform or seek help from a tenant advocacy group or consumer agency.
Do I have to join a membership to avoid payment fees? No, you should not be forced to pay for a membership to access basic payment options; platforms must offer at least one fee-free method.